![]() Hypothesis: Outlier has high chance to regress to average. Statistics: Do Stock Price Gaps Always Get Filled? How to use GapDB for investing Gap Checker: Individual stocks In layman’s word, 9 in 10 gaps get filled not always, but pretty close.įor more details on the statistics of gap filling, please read my article: When a stock price gap is observed, by a chance of 91~92% it will get filled in the future. If a stock has down gap that is not filled, that stock will probably go to zero and the company must be a low quality company that one should stay away. ![]() Since the stocks and companies we care are all sound companies and their prices have overall long term uptrend, most “down” gaps should have got filled. I don't have any statistics about down gaps. All gaps on use the low(t) > high(t-1) definition. I don't use open gaps at all on outside of this introductory section. On no-fill days the gap fade strategy closes the trade at the days closing price at the end of RTH (in this case 16:15 EST). Open gaps are very common, often filled on the same day, less significant signal. An "open gap" is recorded when the open price is higher than the high of previous trading day. Some people often refer to "open gap" as their definition of "gap". What is a gap?Īn up gap is recorded when the low of trading day is higher than the high of previous trading day (day -1).Ī gap is filled in subsequent trading days when the low of that day is, for the first time since gap day, lower or equal to the high of day -1. If a gap only retraces a portion of the way to the closing price of the day preceding the gap, then it’s partially filled. ![]() ![]() Once it’s retraced fully, then the gap is considered filled. This guide provides an overview on how to use gap and tools for trading and investing. A gap getting filled is when price action at a later time retraces to the closing price of the day preceding the gap. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |